Thursday, January 03, 2013

Wind-energy tax credit will live for at least a year

A one-year extension of a tax credit for wind energy generators was included in the deal to avoid the fiscal cliff. The credit "has been a major driver for wind development across the U.S. over the past two decades," reports K Kaufmann of The Desert Sun in Palm Springs, Calif. Most large wind farms are built in rural areas in the West. (Desert Sun photo by Wade Byars, wind farm north of Palm Springs)

The extension would allow any wind project that begins construction this year to claim the credit, even if it doesn't become operational until 2014. The previous version required electricity to be generated by year's end. Many industry officials said that without the credit, construction of wind projects would be difficult, and the prospect it would expire had wreaked havoc on wind-parts plants across the U.S., which laid off thousands of workers in recent months, Kaufmann reports.

Project developers put operations on hold, threatening about 37,000 more jobs, according to the American Wind Association. Loss of momentum will likely slow new construction this year, California Wind Energy Association director Nancy Rader told Kaufmann. (Read more)

No comments: